New Car Loan Estimates in Quebec for 600-700 Credit Scores
Navigating the auto finance landscape in Quebec with a credit score between 600 and 700 puts you in a strong position, especially when buying a new car. This score range, often called 'near-prime' or 'fair credit,' shows lenders you're on the right track. This calculator is tailored to provide realistic payment estimates for a 60-month (5-year) term, a popular choice that balances affordable monthly payments with the total cost of borrowing.
How This Calculator Works
This tool simplifies the complex calculations lenders use. Here's a breakdown:
- Vehicle Price: The Manufacturer's Suggested Retail Price (MSRP) of the new car you're considering.
- Down Payment/Trade-in: The amount of cash you're putting down or the value of your trade-in vehicle. This amount is subtracted directly from the vehicle price, reducing the total loan amount.
- Estimated Interest Rate: For a 600-700 credit score on a new vehicle in Quebec, rates typically range from 7.99% to 12.99% (OAC). New cars are lower risk for lenders, securing you a better rate than a used car. We use a representative rate in this range for our calculations.
- Loan Term: Fixed at 60 months to match your selection.
- A Note on Quebec Taxes (GST/QST): This calculator estimates your loan payment based on the vehicle's price *before* taxes. The Goods and Services Tax (GST) and Quebec Sales Tax (QST) will be calculated and added to the final bill of sale at the dealership. Be sure to account for this in your total budget.
Example Scenarios: New Car on a 60-Month Term
To give you a clear picture, here are some estimated monthly payments for popular new vehicle types in Quebec. These examples assume a $2,000 down payment and a 9.99% interest rate, a common rate for this credit profile.
| Vehicle Type | Example Price | Loan Amount (After $2k Down) | Estimated Monthly Payment |
|---|---|---|---|
| New Compact Sedan (e.g., Honda Civic) | $35,000 | $33,000 | ~$695/month |
| New Compact SUV (e.g., Toyota RAV4) | $45,000 | $43,000 | ~$906/month |
| New Pickup Truck (e.g., Ford F-150) | $55,000 | $53,000 | ~$1,116/month |
Disclaimer: These are estimates for illustrative purposes only. Your actual payment will depend on the specific vehicle, lender approval, and final interest rate (OAC).
Your Approval Odds & What Lenders Look For
With a 600-700 credit score, your approval odds for a new car loan are very high. Lenders will see you as a responsible borrower who is actively managing or rebuilding their credit. Beyond the score, they focus on two key areas:
- Income Stability and Verification: Lenders need to see consistent, provable income that can comfortably cover the new car payment plus your other existing debts (like rent/mortgage, credit cards, etc.). The total of these payments should ideally not exceed 40-45% of your gross income. If you have unique income situations, it's still possible to get approved. For more information, read our guide: Self-Employed? Your Income Verification Just Got Fired.
- Down Payment: While not always mandatory, a down payment significantly strengthens your application. It reduces the lender's risk and lowers your monthly payment. Even $1,000 to $2,000 can make a big difference in the rates you're offered. If a down payment is a challenge, options are still available. Learn more in our article, Your Down Payment Just Called In Sick. Get Your Car.
Ultimately, your credit score is just the starting point of the conversation. Lenders look at the complete financial picture. For a deeper dive on this topic, check out Your Credit Score is NOT Your Rate. Get a Fair Loan, Toronto.
Frequently Asked Questions
What interest rate can I expect in Quebec with a 650 credit score for a new car?
With a 650 credit score, you're in a solid 'near-prime' category. For a new vehicle, which is considered excellent collateral by lenders, you can realistically expect interest rates in the range of 7.99% to 12.99% OAC (On Approved Credit). The final rate will depend on your income, employment stability, and the size of your down payment.
Why does this calculator show 0% tax for Quebec?
This calculator is designed to estimate the loan payment based on the vehicle's price, which is the amount being financed. In Quebec, the 5% GST and 9.975% QST are calculated on the final sale price at the dealership and added to the bill of sale. Your loan will then cover this total amount. We keep the calculator pre-tax to give you a clear baseline for the vehicle cost itself.
Is a 60-month (5-year) loan a good idea for a new car?
A 60-month term is one of the most common choices for new car loans. It offers a good balance between a manageable monthly payment and paying the car off in a reasonable timeframe. While longer terms (72 or 84 months) will lower your payment further, you'll pay significantly more in total interest over the life of the loan.
How much of a down payment do I need with a 600-700 credit score?
With a score in this range, a down payment is highly recommended but not always required. A down payment of 10% of the vehicle's price is a great target. It reduces the amount you need to borrow, lowers your monthly payment, and shows the lender you have a strong commitment, which can help you secure a better interest rate.
Can I get approved if I have a 620 credit score but a high income?
Yes, absolutely. Lenders in Quebec look at your entire financial profile. A high, stable income is a very strong factor that can often offset a credit score that is still in the rebuilding phase. Lenders will use your Debt-to-Service Ratio (DSR) to confirm you can afford the payment, and a high income makes that much easier to demonstrate.
